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Demography, family, and gender

Population characteristics strongly predict labor market success. One of the biggest economic changes has been the rise of women in the labor market. The upcoming demographic imbalances suggest substantial adjustment processes on labor markets around the globe. The articles in this subject area provide evidence relating the role of demography in social, cultural, and biological processes to their effects on worker well-being.

Despite major efforts at equal pay legislation,
gender pay inequality still exists in the developed economies. How can this
be put right?

Despite equal pay legislation dating back 50
years, American women still earn 22% less than their male counterparts. In
the UK, with its Equal Pay Act of 1970, and France, which legislated in
1972, the gap is 21% and 17% respectively, and in Australia it remains
around 17%. Interestingly, the gender pay gap is relatively small for the
young but increases as men and women grow older. Similarly, it is large when
comparing married men and women, but smaller for singles. Just what can
explain these wage patterns? And what can governments do to speed up wage
convergence to close the gender pay gap? Clearly, the gender pay gap
continues to be an important policy issue.

Better educated parents invest more time and
money in their children, who are more successful in the labor market

Governments invest a lot of money in education,
so it is important to understand the benefits of this spending. One
essential aspect is that education can potentially make people better
parents and thus improve the educational and employment outcomes of their
children. Interventions that encourage the educational attainment of
children from poorer families will reduce inequality in current and future
generations. In addition to purely formal education, much less expensive
interventions to improve parenting skills, such as parental involvement
programs in schools, may also improve child development.

Government policies can have a modest effect on
raising fertility—but broader social changes lowering fertility are
stronger

Since 1989 fertility and family formation have
declined sharply in Central and Eastern Europe and the former Soviet Union.
Fertility rates are converging on—and sometimes falling below—rates in
Western Europe, most of which are below replacement levels. Concerned about
a shrinking and aging population and strains on pension systems, governments
are using incentives to encourage people to have more children. These
policies seem only modestly effective in countering the impacts of
widespread social changes, including new work opportunities for women and
stronger incentives to invest in education.

Youth bulges are not a major factor explaining
current levels of youth unemployment

The youth population bulge is often mentioned in
discussions of youth unemployment and unrest in developing countries. But
the youth share of the population has fallen rapidly in recent decades in
most countries, and is projected to continue to fall. Evidence on the link
between youth bulges and youth unemployment is mixed. It should not be
assumed that declines in the relative size of the youth population will
translate into falling youth unemployment without further policy measures to
improve the youth labor market.

The hidden private cost of obesity: Lower
earnings and a lower probability of employment

Rising obesity is not only a pressing global
public health problem. There is also substantial evidence that obese people,
particularly women, are less likely to be employed and, when employed, are
likely to earn lower wages. There is some evidence that the lower earnings
are a result of discriminatory hiring and sorting into jobs with less
customer contact. Understanding whether obesity is associated with adverse
labor market outcomes and ascertaining the source of these outcomes are
essential for designing effective public policy.

Nuclei of evidence tell a grim story, but a veil
of ignorance impedes policy efforts

The Roma are the largest ethnic minority in
Europe—as well as one of the most disadvantaged. A triple vicious circle is
at play: Substandard socio-economic outcomes reinforce each other; they fuel
negative attitudes and perceptions, leading to ill-chosen policies; and
segmentation is perpetuated through (statistical) discrimination. A severe
lack of data precludes progress. However, existing bits of evidence point to
virtuous ways out.

While most effects are positive, they tend to be
modest and fade over time—in addition, some mentoring programs can
backfire

Mentoring programs such as Big Brothers Big
Sisters of America have been providing positive role models and building
social skills for more than a century. However, most formal mentoring
programs are relatively novel and researchers have only recently begun to
rigorously evaluate their impact on changing at-risk youth’s perspectives
and providing opportunities for them to achieve better life outcomes. While
a variety of mentoring and counseling programs have emerged around the world
in recent years, knowledge of their effectiveness remains incomplete.